Developing a Retail Buying Model Based on the Use of Assortment Decision Factors

dc.contributor.author

Bahng, Youngjin

en_US

dc.date.accessioned

2017-04-06T15:42:46Z

dc.date.available

2017-04-06T15:42:46Z

dc.date.issued

2011-06-03

en_US

dc.identifier.other

etd-06142011-191031

en_US

dc.identifier.uri

http://hdl.handle.net/10919/77107

dc.description.abstract

As end-consumers are surrounded by a tremendous number of multi-channel retailers and their products, clothing retailers are exposed to numerous clothing samples with a variety of styles in various price ranges, offered by onshore and offshore manufacturers. Although manufacturers or vendors offer well-salable products, a retail business may not be successful in maximizing profits without a strategic retail buying planning process.
The purpose of this study is to develop a retail buying model for clothing retailers. In order to test the variables that comprise the retail buying model, the objectives of the study are to: (a) investigate important assortment decision factors for clothing retail buying; (b) segment clothing retail buyers by their decision factor uses; (c) characterize the segments by buyer (i.e., age, gender, education, experience, employment) and company demographics (i.e., types of products, type of store, size of the firm); (d) examine the relationship between these demographic variables and the factor uses; (e) examine the influence of the factor uses on the success of assortment planning; (f) examine the influence of the success of assortment planning on firm performance; and, (g) examine the influence of extraneous variables (i.e., retail environment) on firm performance.
After two pilot tests, adjustments were made to wording in the questionnaire. Data collection, using a pen and paper questionnaire, was conducted using convenience and snowball sampling. Through this method, 425 clothing retail buyers, merchandisers, or store owners, who are involved assortment planning and buying in South Korea, participated in the survey.
A variety of statistical analyses was used to test the hypotheses. For testing Hypothesis 1, the mean and standard deviation of the assortment factor items were used to rank important decision factors for assortment planning. To test Hypothesis 2, retail buyers were segmented by their assortment decision factor use through exploratory factor analysis and K-means cluster analysis. For Hypothesis 3, Chi-square was utilized to characterize the segments of buyers and merchandisers from Hypothesis 2, using buyer and company demographics. For Hypothesis 4, Pearson and Spearman Correlations were used to test if correlations exist between buyer and company demographic variables and decision factor use. For Hypotheses 5 to 7, a Structural Equation Model (SEM) was developed to test if causal relationships exist among assortment decision factor use, the success of assortment planning, firm performance, and retail environment.
All Hypotheses were fully or partially supported. Based on the results of hypotheses testing, the finalized retail buying model was developed. The finalized retail buying model based on the use of assortment decision factors will benefit retailers by helping retail buyers to analyze available information and identify the need for additional decision factors.
Due to the use of convenience and snowball sampling as well as the limited geographic location of the survey, the finding of the current study cannot be generalized to the general population of clothing retail buyers. Future studies using probability sampling methods, utilizing qualitative methods, and/or examining in different countries, are suggested to verify the current findings and confirm the validity of the framework.

en_US

dc.language.iso

en_US

en_US

dc.publisher

Virginia Tech

en_US

dc.rights

I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee.
I hereby grant to Virginia Tech or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.

en_US

dc.subject

Decision Factors

en_US

dc.subject

Retail Buying

en_US

dc.subject

Clothing

en_US

dc.subject

Firm Performance

en_US

dc.subject

Characteristics of Company

en_US

dc.subject

Buyer's Experience

en_US

dc.subject

Retail Environment

en_US

dc.subject

Assortment Planning

en_US

dc.title

Developing a Retail Buying Model Based on the Use of Assortment Decision Factors